Sunday, May 12, 2013

Tips for Negotiation

One of my favorite movies is titled, “Ray”. The movie was produced in 2004 and features Oscar winning actor, Jamie Foxx.
 
http://www.imdb.com/title/tt0350258/

 The storyline does an excellent job at telling the history of the life of a star.  Viewers learn how one man with impaired vision was able to move from obscurity to become a world-renowned musician and entertainer. In a scene from the movie, Ray can be found negotiating his way into a record deal with ABC Record Company. Having to announce the end of his deal with his former company, Atlanta Records was difficult. What helped soften the blow of delivering bad news was the celebratory deal Ray was able to report. At that time, no other artist had negotiated a deal of that capacity. This scene remains iconic for one who is learning to conduct business in the entertainment industry.

With a plan to assist others in helping their vision go viral, this post will explore proven strategies that are effective towards that end. As my career transitions from employment counseling into artist management, there exist a natural tendency to identify patterns that carryover from one sector into the other. Research shows there are many common factors in creating strong negotiations.  The following videos will focus on three main tips that can be helpful for navigating through a principled negotiation.

1) separating the people from the problem

2)  using objective criteria

3)  preparing a BATNA

In this first video, the speakers reveal tips that benefit when in a job interview. When the question of salary comes up, coach Peggy McKee suggestions approaching it carefully. Her main reason for this advice is supported by her belief that who ever suggest an amount of money first is likely to be the amount you receive, and can circumvent a chance to get a better deal. This Med Sales recruiter says “There is some correlation between the first person who says the number and the actual number they arrive at.” This means it is highly significant to prepare your strategy on how to handle conversations on salary during a job interview. What is not wise, is to say one number and find oneself in regret by the end of the day.

1.     http://www.youtube.com/watch?v=GNjFSnvr8qI&feature=player_embedded

To avoid this problem McKee offers advice that is extremely similar to that of Fisher and Urys’ book, Getting to Yes. One solution is to separate the people from the problem. To do this, McGee leaves the following three tips as advice.

A)   never bring it up

B)   deflect the questions and ask them are they offering you a job now? Or say

C)   I am certain that given the responsibilities and how important it is to you that you will be committed to financially compensate the person that you select

Her advice is not merely avoiding the topic, but is simply dealing with the people problem first. After determining if you have the job that would be a more beneficial time to discuss salary. Fisher and Ury frame this strategy as “Disentangle the relationship from the substance: deal directly with the people problem” [page 23]

In the next video we find clear evidence of another strategy to improve the outcome of obtaining a mutual agreement. This speaker Katie Roney agrees that talking about money is important. Her advice is that you may be able to negotiate a greater salary than what was offered. She suggests, this is best done by using what Fisher and Ury refer to this as objective criteria.

http://www.youtube.com/watch?v=X9QfOzBAp6s&feature=player_embedded

Roney says having an armful of information is beneficial to determine the other parties underlying interest. Through research and study of the market you can find ways to match your skills with the companies needs. Defining how your brand separates you in a way that is unique can be helpful. This may work improve your ability to assist a company towards achieving an unspoken goal.

Plan to justify the request for your salary by relying on that information gathered as the merit for your case. It is not enough to just say I am better. The question becomes, better than what? There should be a specific and relevant point of comparison, when negotiation for additional compensation from the previous offer. Roney suggest preparation is the key to success in negotiation salary. The objective criteria available to you can be found regarding what others in your range are currently making. Understand more about the requirements for the position

Up sales of your self is okay. One helpful way to do that is to approach the subject with honesty and a plan. When you look over the details of the job and familiarize yourself requirements, you may discover that you have more to offer.

This final video takes a look at the use of a phrase coined by Fisher and Ury called BATNA Fisher and Ury teach “protecting your self against a bad agreement is one thing”[Page 104]. The speaker in the video share powerful tips that result from knowing your Best Alternative To A Negotiated Agreement, or BATNA. This is important because it is not just suggesting research, but also to prepare alternatives.

http://www.youtube.com/watch?v=428BG2q6xtU

To help define what can be expected from each party in a negotiation, this speaker, carefully explains the role of each party, referring to one as buyer and the other as seller. While the roles of the party may be used to describe a principled negotiation of a financial planner, the tips remain relevant for promoting an artist in the entertainment industry, as well.

This video demonstrates the power of preparing a BATNA. The speaker says“ the stronger your BATNA position the better your results of your negotiation”. One take away from this resource is not to wing it. Negotiations that are handled in that manner can only lead t confusion anxiety and indecision. The more options you have the more like you are to relax

What is more helpful than to wing it is to work toward improving your BATNA.

Having a BATNA can be helpful promote the following outcomes.

·      The more options you have the greater your performance

·      The more options you have the more confidence you have

·      The more options you have the more protected you are against accepting an agreement that is not in your best interest


REFERENCES
Book
Fisher, Ury, R. &. W. (2011). The method. In Getting to yes (3rd ed.). doi:www.penguin.com

IMBD. (2004). Ray. Retrieved from http://www.imdb.com/title/tt0350258/
http://www.imdb.com/title/tt0350258/

McKee, P. (2008, June 3). Discussing money (salary negotiations) in the job interview - get hired to. Retrieved from http://www.youtube.com/watch?v=GNjFSnvr8qI&feature=player_embedded

Roney, K. (2007, December 27). How to interview for a job : How to talk salary in a job interview . Retrieved from http://www.youtube.com/watch?v=X9QfOzBAp6s&feature=player_embedded

planner lounge. (20110, august 23). Selling your financial planning practice negotiation - aspirations and batna . Retrieved from http://www.youtube.com/watch?v=428BG2q6xtU
http://www.youtube.com/watch?v=428BG2q6xtU










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